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MIL has no money or assets. I am on her checking account and have POA. Will my income affect her eligibility?

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No, your income does not come into it. I would call your Social Services and sit down with a caseworker. Sounds like Moms application maybe cut and dry.
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https://healthandwelfare.idaho.gov/medicaid-program-income-limits

Be aware that there is a difference between Community Medicaid and Long Term Care Medicaid.

I assume that you have not been co-mingling your money with mom's money.

Your income does not count. She is applying as an individual.
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